Expanding Medicaid or opting out both carry big price tags for New Hampshire

Friday

Nov 16, 2012 at 3:15 AM

By Michelle Kingstonmkingston@fosters.com

CONCORD ­— The state Health and Human Services Department released the first of a two-part study on the fiscal impact on New Hampshire regarding Medicaid expansion under the federal Affordable Care Act.

New Hampshire could save up to $114 million if it decides not to expand Medicaid under the new federal health care law, but it would lose $2.5 billion in federal aid toward health care for the state’s uninsured, according to The Associated Press.

And if New Hampshire does expand Medicaid, it could cost an estimated $85 million over seven years. But New Hampshire’s health care providers would share in the $2.5 billion flowing into the state from the federal government.

Randall Haught, senior director of the Lewin Group, explained the pros and cons of both expanding and not expanding Medicaid to health care providers, New Hampshire residents, medical professionals and the media on Thursday in the Brown Auditorium at the Department of Health and Human Services.

Haught said that in June 2012, the Supreme Court did the “exact opposite” of what was expected and made Medicaid Expansion optional for states.

DHHS felt that more data needed to be discussed.

The agency hired the Lewin Group to look at both sides of expanding the program and created a report, which is funded by Health Strategies of New Hampshire, an operating foundation of the Endowment for Health. The report looks at the impact Medicaid Expansion would have on New Hampshire from 2014-2020.

The first phase of the study was released Thursday, stating that if the state chooses to hold off on expansion, it could reduce state Medicaid spending by tens of millions of dollars over the six-year period. Also, if more people are covered by Medicaid, payments could be much lower for hospitals for the care they provide to the uninsured.

Most of the Medicaid expansion options that were examined in the first phase of the study showed an increase in state spending with an exception to a number of reduced eligibility options.

If New Hampshire were to go ahead with the expansion on Medicaid, it would reduce the number of uninsured in the state by another 22,300 people. Expanding Medicaid would provide subsidized coverage for the lowest income group of adults in the state. This particular group of people would not have access to health care if the expansion is not put into effect.

Gov.-elect Maggie Hassan is in favor of expanding Medicaid, but would have to win the approval of the Legislature in order to pass it in New Hampshire.

Phase two of the study is expected to be published in December of this year. It will show the impact of the additional federal revenues on the economy in the state if New Hampshire were to expand Medicaid and show the potential impact on other state health program spending, Medicaid DSH payments and provider uncompensated care and the financial impact on providers in the state.